Affects Solana and 7 other altcoins
Coinbase, the No. 1 cryptocurrency exchange in the United States by trading volume, is once again attracting legal attention. A new class action lawsuit has been filed against the company. It is claimed that the company’s entire business model was illegal from the beginning. This case mirrors similar litigation the company is currently facing.
Plaintiffs in the new lawsuit claim that the ALGO, XLM, SOL, MANA, MATIC, NEAR, UNI, and XTZ tokens traded on Coinbase are actually securities. The lawsuit was filed in the Northern District of California by Scott+Scott, a West Coast law firm representing plaintiffs in California and Florida.
The lawsuit alleges that Coinbase “knowingly, knowingly, and repeatedly violated state securities laws since it began operations.” In response to these claims, Coinbase issued a statement denying the claims as “legally baseless,” expressed full faith in due process, and stated its commitment to fully resolve the claims in a timely manner.
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Interestingly, this case is very similar to other cases currently pending in court. This other lawsuit also alleges consumer harm resulting from the sale of securities on the Coinbase platform. The case, which was initially dismissed in February 2023, was partially revived following a recent decision by the U.S. Court of Appeals for the Second Circuit.
This case differs from Coinbase’s widely publicized legal battle with the U.S. Securities and Exchange Commission (SEC) over whether tokens sold on Coinbase are securities. In this ongoing case, Coinbase recently filed a temporary appeal challenging the judge’s decision to allow the case to proceed.
*This article is not investment advice.
Continue reading: New Lawsuit Filed Against Coinbase: Impact on Solana and 7 Other Altcoins
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